FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Subject-Accounting

Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $30,000,000 in cash.
The book values and fall values of Iceberg's assets and liabilities were as follows:
Current assets
Property, plant, and equipment
Other assets
Current liabilities
Long-term liabilities
Required:
1. Calculate the amount paid for goodwill
2. Determine the financial statement effects of the acquisition.
Required 1 Required 2
Book Value
$ 11,400,000
20,200,000
3,400,000
7,800,000
13,200,000
Complete this question by entering your answers in the tabs below.
Assets
Determine the financial statement effects of the acquisition.
Note: Amounts to be deducted should be indicated with a minus sign. Enter your answer in millions rounded to I decimal place. (.e. 5,500,000 should be entered as 5.5).
Cash
Other Assets
Property, plant and equipment
Fair Value
$ 14,490,000
26,200,000
4,400,000
7,800,000
12,200,000
Balance Sheet
Liabilities
Long-term Liabilities
Stockholders' Equity
Common Retained
Stock Earnings
< Required 1
Revenues
Income Statement
Expenses
Net
Income
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Transcribed Image Text:Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $30,000,000 in cash. The book values and fall values of Iceberg's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: 1. Calculate the amount paid for goodwill 2. Determine the financial statement effects of the acquisition. Required 1 Required 2 Book Value $ 11,400,000 20,200,000 3,400,000 7,800,000 13,200,000 Complete this question by entering your answers in the tabs below. Assets Determine the financial statement effects of the acquisition. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answer in millions rounded to I decimal place. (.e. 5,500,000 should be entered as 5.5). Cash Other Assets Property, plant and equipment Fair Value $ 14,490,000 26,200,000 4,400,000 7,800,000 12,200,000 Balance Sheet Liabilities Long-term Liabilities Stockholders' Equity Common Retained Stock Earnings < Required 1 Revenues Income Statement Expenses Net Income
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